Beauty Is Recession-Proof They Say But Here Are The Challenges Lying Ahead!
Of the selective webinars I attended on the beauty industry, this one by the GCI Magazine and moderated by Jeb Gleason-Allured was one that I resonated with. It dealt with the Beauty Strategies for Uncertainty, how to survive, and thrive in the post COVID19 world.
Here are some key learnings from the webcast that I have summarized and I am sure many from the industry would resonate with the same.
The near-future implications in the Beauty industry worldwide:-
- Consumers would be moving to self-care (or doing it at home regime).
- Hygiene and safety will be a top priority, so there would be a natural shift to wellness products, supplements, vitamins.
- Efficacy & functionality will be the driving force.
- Trends will see natural botanicals on the top tier.
- Consumers’ sentiment will turn towards buying local products to boost the local economy as the focus will be to support the local economy.
On the other hand, retailers and distributors would face changes such as:
- Drive is more towards stable and conventional products.
- Reduced commitment and drive to invest in new brands and products.
- Innovation and new launches will not be welcome for a long time.
- Focus on a touchless environment and buyer safety.
- Pushing traditional distribution to an online experience.
- Cash conservation would be a high priority. (even if that means holding payments in the supply chain)
We are in unchartered territories, and everybody has a positive outlook on the future. I see the following challenges for importers:
- Regulations and compliance could get more stringent as there could be an overlap in medical and cosmetic products.
- Airfreight and Sea freight could see a steep spike in rates, thereby affecting the import pricing.
- The cost of distribution could get really high, and that could call for increased pricing which means consumers’ favourite brands could get more expensive.
- There could be a shift in marketing investments from traditional ATL/BTL to an online digital experience via digital advertising (Influencers, please excuse – with ROI on every penny spent being focal, your influence may take a back seat)
Retail landscape will shift to contactless, safety measures for sampling, testing and experience for gaining back consumer confidence.
We are in unchartered territories and I call this ‘The Great Correction Revolution’ for many industries. ‘The Long Pause’ as some have coined this period is giving us time to think, prepare, and probably undo some regular business practices and write new ones.
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